Enterprise_Resource_Planning

8/7/2019 Enterprise_Resource_Planning

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Product Lifecycle Management

Enterprise Resource Planning

Craig L. Miller, Ph.D.

Department of Computer Graphics TechnologySchool of Technology


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Product Lifecycle Management 2

Agenda

ERP 123 Case Study: Corporate Express

PLM vs. ERP, SCM, and CRM


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What is ERP?

Enterprise Resource Planning (ERP) Planning?

Resource?

Enterprise!!

ERPs ambition

Integrate all departments and functions across a company onto asingle computer system that can serve all those differentdepartments' particular needs.


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ERP = ??

ERP vanquishes the old standalone computer systems in finance,HR, manufacturing and the warehouse, and replaces them with asingle unified software program divided into software modules thatroughly approximate the old standalone systems

The best way to demonstrate ERPs value is the improvement ontaking a customers order and processing it into an invoice, a.k.a. theorder fulfillment process

ERP is the back office while CRM handles the front selling process


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Customers Order

The old way Delay of traveling

Paper missing or key-in errors

Lack of visibility due to stand-alone systems

The new way A software roadmap for automating different steps for order fulfilling

Ex. For a customer service representative

Credit rating and order history from finance Companys inventory levels from warehouse

Shipping dock's trucking schedule from logistics


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ERP Context

Order management Procurement

Financials

Warehouse/inventory Marketing

Human resource

Production planning

Project management


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Corporate Express - Example

Business category Company information

April 11, 2003: 12,400 @ more than 200 locations and 48distribution centers

Number of products More than 60,000 for 400,000 customers

Around 50,000 online for 40,000 customers

Target customer Sales of 2001

5 billion in sales


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Corporate Expresss Operations

Business model

B2B Manufacturer Corporate Express Customer

Channel of order

Business challenges

Growing pain Acquired 500+ companies in a 15-year period

Various order fulfillment applications and databases on 43servers

Scalability 4.4 millions on 01/08/02; 7 millions on (01/07/03)

Raised from 30% to almost 50% from online sales

1.5 billion for e-Commerce for 2003


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Corporate Expresss Implementation

Components E-Way: Online procurement system

InVision: In-house ERP (order fulfillment)

PeopleSoft Financials and HR management Infrastructure

Sun ONE + J2EE

Oracle 8i

Why Sun Micro

IT expertise and hand-in-hand consulting

Hardware expandability: 10 -> 56 CPUs


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Benefits

$10,000 saved/daily (= 3.65 millions annually) in operationalexpense

100% ROI in 9 months

10% increase of computing environment ownership

157% increase in sales through E-Way

99.99% availability of servers

100% faster processing (250 transactions per second) for

employees productivity enhancement

(From Sun Micro, 2002)


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ERP Practitioners

ERP market value 28.9 billion in 2003

B2B 1.3 trillion by 2003 (Forrester Research)

ERP Vendor SAP, Oracle, Baan, PeopleSoft

MAPICS, CA, Microsoft

ERP Customers Major manufacturers Retail and mail order

Does everyone need ERP?


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When PLM Meets the Rest

Corporate Express Promotional Marketing

THE promotional merchandise catalog Items for business needs or specific promotional

requirements

Item number: 750,000+ with 15-20% cheaper

Mass customization

For customer: Order request (CRM)

For CEPM: Inventory and cost (ERP + SCM)

For manufacturer: Engineering change (PLM)

Key issues: Numbers of transactions


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The Complete Supply Chain

CorporateExpress

customer

customer

customer

customer

vendor 1

vendor 2

vendor 3

vendor 4

vendor 5

MAPICS

E-Way

InVision


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Conclusion

What is ERP How does it work

PLM vs. ERP, SCM, and CRM

Reference

SAP

Oracle Sun

The ERP Fan Club
http://www.sap.com/http://www.oracle.com/http://www.sun.com/http://www.erpfans.com/http://www.erpfans.com/http://www.sun.com/http://www.oracle.com/http://www.sap.com/


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Acknowledgments

The author wishes to acknowledge the support from theSociety for Manufacturing Engineers - EducationFoundation, SME-EF Grant #5004 for Curriculum Modulesin Product Lifecycle Management.

Documents

Enterprise_Resource_Planning